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Kenneth AlstonSpecial Advisor to the Secretary U.S. Department of Energy
3rd Annual Green Investment Financing Forum (GIFF)Tokyo, Japan
October 14, 2016
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Overview: U.S. Department of Energy
Department of Energy at a Glance:¨ Mission: To ensure America’s
security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.
¨ Budget: $32.5 billion (FY 2017 Request)
Dr. Ernest Moniz, U.S. Secretary of Energy
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COP 21: Paris
INDCs: Individually Determined National Commitments• 188 binding INDCs made
covering 99% of global emissions
• Reaffirms 2 degree C target
Mission Innovation: • 20 country commitments to
expand clean energy R&D, covering more than 80% of global carbon emissions
• Private sector investors to form a Breakthrough Energy Coalition, coordinated by Bill Gates
Mission Innovation Announcement at Paris COPNovember 30, 2015
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The Cleantech Valley(s) of Death
1st Valley of Death 2nd Valley of Death
Demonstration: DOE Applied Science Programs
• Energy Efficiency & Renewable Energy ($2 B/ yr)
Commercial Maturity
Tech
nolo
gy M
atur
ity
R&D: DOE National Labs
ARPA-E ($300 MM/yr)
Commercial Financing:
Private Sector Financing (Banks &
Bond Market)
DOE Programs Support the Full Arc of Commercialization
Most Least Technology Risk
Initial Commercial Deployment:
DOE Loan Programs Office (LPO)
($32 B Portfolio)
Leas
tTe
chno
logy
Mat
urity
Mos
t
Debt: US Gov’tEquity: PrivateGrants Grants
Debt: PrivateEquity: Private
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Revolution Now Report: Exciting Future from Economies of Scale
Solar PV Wind
Lithium-Ion Batteries LED Lighting
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New Financing is Required for Energy Infrastructure
¨ The Need for New Investment in Clean Energy:¤ Worldwide: $44 trillion in additional clean energy investment
needed worldwide through 2050, in order to have an 80% chance of maintaining 2 degrees Celsius limit (International Energy Agency, Energy Technology Perspectives Report, 2014)
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The need for additional sources of clean energy technology investment
¨ Private investment in R&D (as % of sales)20.5%
11.5%
7.9%
2.4% 0.4%
Pharmaceuticals Aerospace & Defense
Computers & Electronics
Cars/Automotive
Energy
Source: American Energy Innovation Council, Catalyzing American Ingenuity: The Role of Government in Energy Innovation, 2011
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DOE’s 17 National Laboratories are the largest supporter of basic research in physical sciences in the United States.
Department Of Energy National Laboratories
DOE Office: Loan Programs Office
Mission: Accelerate the U.S. commercial deployment of
clean energy and advanced vehicle technology
Diverse Portfolio: Loan authority for fossil energy,
renewable energy, nuclear, and advanced vehicles
160-person finance, engineering, and legal teamPortfolio of more than $30
billionMore than $40 billion in remaining loan authority
Note: The current portfolio includes loans, loan guarantees, and commitments.
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Note: Total values include estimates for undisclosed deals.Source: Bloomberg New Energy Finance
14 October 2016
US VC/PE NEW INVESTMENT IN CLEAN ENERGY 2004 - 2015 ($BN)
● Early- and late-stage VC funding rounds as well as funds raised privately for the purposes of expansion by companies that are primarily involved in the clean energy industry according to BNEF exposure ratings.
0.64bn
1.36bn
2.63bn
3.83bn
6.85bn
3.86bn
5.72bn 5.48bn
4.49bn
2.11bn
3.29bn 3.39bn
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Energy smart technologies Solar Biofuels Wind Other
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White House Clean Energy Investment Initiative
White House Clean Energy Investment Summit
¨ $4 billion in private sector investment commitments
¨ More than 100 private sector participants
¨ Announced the US Department of Energy's Clean Energy Investment Centerwww.energy.gov/investmentcenter“You have the capacity to fundamentally
change our direction... We need you to continue to work to bring even more philanthropies and investors on board.”- Vice President Biden, June 16, 2015
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DOE Office: ARPA-E¨ Description: The Advanced Research
Projects Agency-Energy (ARPA-E) invests in disruptive ideas to create America’s future energy technologies. ARPA-E focuses exclusively on early-stage technologies that could fundamentally change the way that we generate, use, and store energy.
¨ Project Portfolio: ARPA-E is investing in more than 400 high-potential energy technology projects across 18 focused program areas. Average awards are $2-3 million over several years. More than $1 billion in grant funding has been dispersed to-date.
¨ Fiscal year 2016 Budget Request:$325 Million
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